【Daily】29 July Brief of Pak BizNews
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THE RUPEE: PKR declines further
Pressure due to import payments and the government's reported inability to intervene resulted in the rupee falling further against the US dollar on Thursday with the local currency closing near 240, another record low in the inter-bank market on Thursday. As per the State Bank of Pakistan (SBP), the rupee closed at 239.94, a day-on-day fall of Rs3.92 or 1.63%, against the greenback. The latest depreciation takes total loss to over 13% for the rupee in the last 10 trading sessions.
Govt will complete its term: PDM
Pakistan Democratic Movement (PDM) President Maulana Fazlur Rehman has said that the coalition government led by Pakistan Muslim League-Nawaz (PML-N) will complete its remaining term and the elections will be held on time. Briefing the media after chairing the PDM summit here on Thursday, Rehman who is also the chief of Jamiat Ulema-e-Islam-Fazl (JUI-F) asked the Election Commission of Pakistan (ECP) to announce the reserved judgement in the foreign funding case against former prime minister (PM) Imran Khan immediately, saying that the case has taken eight long years.
External debt, liabilities amount to $126bn
The National Assembly was informed on Thursday that as of May 31, 2022, the country’s total external debt and liabilities amounted to $126.07 billion of which $85.64 billion was on account of public external debt. In a written reply to a question, the minister for economic affairs said that Pakistan obtained $7.3 billion loan from the International Monetary Fund (IMF) during this period.
Outlook downgrade: S&P follows in the footsteps of Fitch, Moody’s
S&P Global Ratings (previously Standard and Poor’s) revised the outlook on Pakistan’s long-term ratings to negative from stable on weakening external position due to higher commodity prices, rupee depreciation, and tighter global financial conditions. The ratings agency also affirmed its “B-” long-term and “B” short-term sovereign credit ratings on Pakistan, as well as “B-” long-term issue rating on Pakistan’s senior unsecured notes and the sukuk trust certificates.
FY22: Profit repatriation rises to $1.5bn
Foreign investors repatriated some $1.5 billion as profit and dividend on their investments in Pakistan during the last fiscal year (FY22). Despite some improvement and six percent economic growth, the repatriation of profit and dividend by foreign investors witnessed a slight increase during the last fiscal year. The State Bank of Pakistan (SBP) on Thursday reported that repatriation of profit and dividend rose by 1.7 percent or $22 million to $1.651 billion during July-June of FY22 as compared to $1.622 billion during the same period of FY21.
Nepra hints at Rs11.37/unit hike for KE, Rs9.89 for Discos in August bills
The electricity consumers across the country will face unprecedented high utility bills in August 2022, as the National Electric Power Regulatory Authority (Nepra) Thursday hinted to allow K-Electric (KE) to charge Rs11.37/unit and ex-Wapda distribution companies’ (XWDiscos) to collect an additional Rs9.89/unit from consumers in their next month’s bills
Govt may increase petrol, diesel prices by Rs10-17per litre
From August 01, 2022, there may be an increase in petrol and diesel prices by Rs10-17 per litre despite the fact that prices of petroleum products and crude oil remained just a little lower
Gold price skyrockets by Rs10,500 per tola in Pakistan
The gold price in Pakistan recorded a single-day highest rise of Rs10,500, making a fresh record of Rs162,500 per tola on Thursday with investors scurrying for a safe haven after a softening currency and bleak economic data underlined the shaky pace of growth.
Export-oriented industry: Energy subsidy to be reviewed quarterly
The government has decided for a quarterly review of subsidy available to export industry for both gas and electricity, in addition to seeking list of captive units enjoying subsidy both on gas and electricity.
Import of wheat approved: ECC lifts import ban on all items except CBUs, home appliances
The Economic Coordination Committee (ECC) of the Cabinet has decided to allow the import of 200,000 metric tonnes of wheat and lifted the ban on the import of all the items except completely built units (CBUs) of auto, mobile, and home appliances. The meeting presided over by Finance Minister Miftah Ismail also gave approval for an increase in petroleum dealers margin by Rs7 per litre both on petrol and diesel from Rs4.90 per litre and Rs4.13 per litre, respectively.
Commodities and Currency: 1-Day Change